The bank is not interested in the purpose of your purchase with credit. In reality, the only thing that is important to you is the conditions you are in when you apply for the loan itself, so it is possible to request a second mortgage loan.
Therefore, if you already own a property and want to acquire another one, you have the possibility of having two mortgage loans. Considerations before requesting your second mortgage loan
The bank, at the moment of knowing if you can have two mortgage loans, will do a risk analysis, just like the first time you applied for a loan. If you are paying a mortgage on a first property, it is more feasible than you can obtain a second mortgage loan through the same bank or entity with which you are operating, as long as you are meeting your credit obligations.
The situation changes if you are about to finish your first loan or have already finished paying it because that home will provide you with the backing of an equity guarantee. In this case, if you add a good footing for the purchase, you will be able to access a second property without problems and much more easily. Likewise, you will have the freedom to quote a mortgage loan with all banks or finance companies to choose the most convenient one without being tied to a specific entity.
Who should have two mortgage loans?
Currently, the best people to buy with a mortgage loan are real estate investors. The advantage lies in the profitability and the capital gain that means allocating the second home for investment. Thus, it is possible to differentiate this purpose from purely holiday use, in which the benefit is the use and not an increase in assets, even when it increases effectively.
So much so that many professionals or economically consolidated families with high incomes start as property investors with excellent results. Many of them resort to personalized advice and seek to quote a mortgage loan that meets their needs and then invest it in an asset that generates revenues in the medium term.
What are the banks asking for?
The requirements of financial institutions to grant a second mortgage loan are practically the same as for the first home:
.- Income stability.
Keep in mind that they will evaluate your situation more carefully and may reject the credit if the current commercial reports do not presume job stability or if they observe instability in the amount of your income.
In this sense, it will only be advisable to take a second mortgage loan if you can demonstrate that you are capable of responsibly meeting the obligations that this entails. If so, you shouldn’t have a problem applying for a second loan.
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It is an alternative that can be cheaper and, in turn, you make sure to carry out the process safely and without inconvenience. Who is responsible for the mortgage cancellation costs? When selling a house with a mortgage, the expenses of its cancellation will correspond to the seller. Knowing this step is of the utmost importance since the charges of a sale are varied. In this way, you will be able to organize yourself in the best way by knowing exactly all the expenses that you will have to assume. Just like when you do the cancellation process, you can do it yourself, let the bank or an independent agent do it. To figure out how you will carry it out, you must consider each of the possibilities. Since going to the bank to an agency will demand a sum of money to pay.